Current mortgage rates start to go down after the Federal Reserve announced that they do not have plans as of now to increase interest rates for the whole 2019.
The 10-year Treasury’s yield dropped at its lowest level (since January 2018) after Federal Reserve’s announcement. Current mortgage rate can continue to go down throughout this year.
What does Federal Reserve do?
The Federal Reserve or Fed is America’s central banking system. In general, the Fed aims to maximize employment and stabilize prices. Also, it moderates long-term interest rates just like that of mortgages. The Fed also supervises and regulates bank institutions and protects the credit rights of consumers.
How does the Fed affect current mortgage rates?
According to Fortune(March 21, 2019), the 52-week low drop rate in average mortgage rate fixed for 30 years is 4.34% from 4.4%.
This latest rate is considerably lower than the drop hit last October which is 5.05%. Since February 2011, 5.05% was at its top level since February 2011. This has taken a toll to sales, decreasing it in November and December.
11 of the 17 Federal Reserve officials voted no to current mortgage increase this year
The Federal Reserve conducted a two-day meeting before making the announcement. They said they would extend their patience while they observe and evaluate the country’s economy or inflation concerns. The report says that 11 of the 17 Federal Reserve officials voted no to current mortgage increase this year. This is a big change knowing that there are only two who support this idea last December 2018. The officials are in-charged in setting the interest-rate policy to be implemented by the Fed.
All in all, though the mortgage rates have become lower, it is still the consumers who can dictate home sales boost. This is based on the Fed’s lowered economic forecast. First time home buyers can take this opportunity to apply for home loan. Keywords: mortgage rates chart, mortgage rate calculator, mortgage interest rates forecast, mortgage rates trend, mortgage interest rates trend, refinance mortgage rates